Hi LesE Embury,
Two separate companies can coexist where one is VAT registered and the other is not and have directors in common.
It depends on the taxable supplies that each company are making and whether they have breached the Registration threshold or not.
If you make a payment,however ,this paymemnt should be made to the company who is making the supply to you.
You may want to report this to us.
Please see the information below:
Report tax fraud or avoidance to HMRC
Thank you.